Retail investors raise stakes in five Adani companies during the June quarter, cut in other five

After raising stakes in all Adani companies during the March quarter, the retail investors have booked some profit in five of the group stocks. Additionally, they have continued to hike stakes in the remaining five entities, data sourced from exchanges showed.

Among the companies that witnessed an increase in retail investment during the June quarter include NDTV, Adani Total Gas, Adani Transmission, Adani Wilmar and ACC. While the individual holdings in NDTV have increased by 4.31 percentage points (ppts) to 21.85 percent, Adani Total Gas saw its retail holdings increase by 2.06 ppts to 4.5 percent.

The average retail holding in Adani group companies has increased to close to seven percent from a little over five percent at the end of 2022. The combined market capitalisation of all Adani shares surged 10.4 percent in three months to Rs 10.1 lakh crore at the end of June 2023.

Interestingly, NDTV, where the retail investors have more than doubled their stake since September last year, has seen its valuation plummeting since then. The stock of NDTV has corrected as much as 58 percent from its September highs. Similarly, the holding by individual investors in Adani Total Gas rose to 4.5 percent from 1.6 percent at the end of December. The stock of Adani Total Gas is down by 83 percent between January and now.

At the end of the June quarter, the value of retail investment in all ten Adani stocks stood at about Rs 43,000 crore, which is almost equal to the value of the Life Insurance Corporation of India (LIC) portfolio. LIC, the largest institutional investor in the country, neither bought nor sold any Adani stocks during the first quarter of FY24.

The data further shows that the promoter entity has cumulatively cut its stake in four group companies by four percent since the beginning of the year. While the promoter holding in Adani Transmission has come off by 5.92 percent since January, Adani Enterprises and Adani Green Energy saw about five percent dilution by the promoter entity during the same period. The promoter holding in Adani Ports & SEZ has reduced to 62.9 percent from 65.1 percent at the end of December 2022.